The Capitalist Class – Something to Strive For

The Capitalist Class – Something to Strive For

I came across a fantastic article on About.com (something that almost never happens) titled, 10 Secrets of the Capitalist Class by Joshua Kennon. I have never heard this term before, and rather than paraphrasing Mr. Kennon’s definition of the class I think it is more valuable to look at his characteristics of the same. I think what struck me about the article is the fact that it felt like the author understood what I am trying to achieve despite the fact that I feel like I am light-years away.

The author refers them as secrets, I don’t think that is anywhere near accurate. While a great read, nothing here is a secret and I think it actually takes a bit away from the article.

Characteristics of the Capitalist Class

The listed characteristics are from the article mentioned above, and then I included some thoughts of my own:

The Capitalist Class Prefers Passive Income Over Active Income – No research reasons why I like dividend paying stocks. This just makes a ton of sense. Although I don’t believe there is any form of true passive income (maybe CDs) but the idea is there…let your money work for you instead of the other way around.

The Capitalist Class Understands the Nature of Money – The author is referring to the nature of compounding and how it can catapult you to another stratosphere if given enough time.

The Capitalist Class Doesn’t Care What the Market Does – I am not sure I completely agree with this one, as I am sure people care, but they don’t freak out. I think the main point he is trying to make is don’t bail on the market every time there is a correction. As Buffet once said, “Be greedy when others are fearful and fearful when others are greedy.”

The Capitalist Class Understands Taxes – Tax rates are different for different investments/income sources.

The Capitalist Class Thinks of Business as a Game

The Capitalist Class Realizes Money is a Fungible Commodity – A dollar is a dollar. Debt is Debt it is the terms and cost of that debt that matters. Income is income regardless of it was in the form of a bonus or your weekly paycheck.

I am not sure why the article is titled “10 Secrets…” as I only counted 9, however, Mr. Kennon provides a profile which is interesting to read:

So, now that you know some of the secrets of the capitalist class, it might be useful to see who the average member of the capitalist class. According to government and private research data, the capitalist class:

More than 90% of capitalist class households consist of a Caucasian married couple where both spouses work and have children.

More than 90% did not inherit their money – they are entirely self-made.

Most own their own business and have lived in the same town for more than a decade. These businesses are unglamorous and include things such as HVAC, commercial plumbing, self-employed lawyers, accountants, and real estate investors.

More than 90% own their own home and have lived in it for years. Fewer than 7% rent or lease.

More than 90% graduated from college, but grades had no correlation with their financial success. In other words, students with a C- average were just as successful as those with an A average.

Interesting profile. Not sure I am a fan of the mentioning of Caucasian as a profile piece. I think almost anyone in America, regardless of where you stand economically, can use the lessons as something to strive for.

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Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

As a dividend investor, I am definitely striving to be and remain part of the capitalist class. Having your money work for you is a great tool to have. You can only work 168 hours/week – by investing in dividend stocks you are essentially buying stock is businesses that have millions of employees working for you,accross the globe, 24/7/365.

My Journey to Millions

My Journey to Millions is an 8 year old personal finance blog focused on topics including basic personal finance issues, advanced insurance planning, high net worth estate planning. In addition, there is a particular focus on dividend growth investing and option trading.